LOCKDOWN: South Africans Buy Just 574 Cars Compared To Average Of 41,000 - Travel

LOCKDOWN: South Africans Buy Just 574 Cars Compared To Average Of 41,000 - Travel - Nairaland

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LOCKDOWN: South Africans Buy Just 574 Cars Compared To Average Of 41,000 by TMKsouth(op): 1:02pm On May 06, 2020*

Due to the ongoing global coronavirus lockdown new car sales in South Africa plunged to a record low in April.

Only 574 units were bought, according to the National Association of Automobile Manufacturers of SA (Naamsa). That compares with average monthly trade of more than 41,000 units over that last 20 years.

The country implemented one of the most severe lockdowns in the world from March 27, allowing most citizens to only go out to buy food, seek medical care and collect welfare grants.

For five weeks only essential goods were allowed to be sold and that meant car dealerships had to close their doors and could only start trading again from May 1, subject to specific directions.

The Naamsa data show only 105 passenger cars were sold in April, a drop of 99.6%. Some of those may, however, be transactions that started in March and were only finalized and recorded last month.

While the drop in sales was to be expected because dealerships were closed “it is a disaster. The country might not even be able to sell more than 60% of the 537,000 vehicles it sold last year", said Mike Schussler, chief economist at Economists.co.za.”

The automotive industry is the largest component of the SA's manufacturing sector and employs more than 100,000 skilled workers.

https://businesstech.co.za/news/motoring/395102/south-africa-sold-just-574-vehicles-last-month/amp/